One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired.
B. prices tend to adjust more quickly downward than upward.
C. wages are sticky downward.
D. input prices increase with output prices.
Answer: C
You might also like to view...
Refer to Figure 9.9. At free trade, domestic consumer surplus would be
A) $20,000. B) $27,500. C) $40,000,000. D) $45,000,000. E) $75,625,000.
All of the following are possible funding sources for the government EXCEPT
A) user charges. B) taxes. C) interest income collected from government bonds. D) borrowing.
Residential construction (new houses and apartments) are included in which component of GDP?
a. government purchases b. retail spending c. investment spending d. net exports
As price increases, firms in a perfectly competitive market find that it is:
A. beneficial to produce fewer units of output. B. more difficult to sell their product. C. easier to sell their product. D. beneficial to produce more units of output.